🏛️
Taxes
Minnesota Payroll Taxes 2026: Complete Overview for Employers
Minnesota graduated 5.35%–9.85% income tax, SUI on $43,000, and all employer obligations.
Practical, accurate resources for Minnesota small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Minnesota graduated 5.35%–9.85% income tax, SUI on $43,000, and all employer obligations.
How to register with Minnesota Department of Revenue and Minnesota Department of Employment and Economic Development as a new Minnesota employer.
New employer rate 1.0%, experienced range 0.10%–9.00%, wage base $43,000.
Minnesota minimum wage is $11.13/hr. Minnesota’s minimum wage is $11.13/hr for large employers. No tip credit is allowed — tipped employees must receive the full minimum wage.
Monthly pay required. Final pay: Terminated employees who demand wages must be paid within 24 hours; otherwise, final wages are due on the next regular payday..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Minnesota-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Minnesota new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Minnesota recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Minnesota small businesses.
Federal OT after 40 hrs/week, Minnesota overtime rules, exemptions, salary thresholds.